Internet payment services company Cybercash Inc hopes to establish itself as a market leader when it merges with privately held payment software company ICVERIFY Inc. Reston, Virginia-based Cybercash will pay ICVERIFY shareholders $16m in cash and 2.3 million shares of the company’s stock, in the transaction that is anticipated to be completed by the end of the second quarter. The companies will integrate their respective products; Cybercash’s internet payment offerings with ICVERIFY’s traditional payment systems targeted at merchants and retailers. The product lines of both companies will continue for the time being, but it is anticipated that over time they will evolve together in future development efforts. They hope customers will be able to easily migrate into a virtual payment world, as Internet commerce gains pace and becomes more popular. The companies have agreed in principal to the deal, which is subject to the usual regulatory proceedings, and on completion ICVERIFY will become a wholly owned subsidiary of Cybercash. Cybercash has recently raised $15m in equity capital (CI No 3,343) and also said this year it hopes to start increasing revenue and turning in a healthy profit (CI No 3,344). As well as forming a powerful joint force in the payment space, the companies believe they will be perfectly positioned to attract business from banks who want to be able to offer their customers internet payment capabilities.
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